OncoGenex Reports Financial Results for Fourth Quarter and Fiscal Year 2008 and Provides Outlook for 2009 Conference Call on Wednesday

OncoGenex Reports Financial Results for Fourth Quarter and Fiscal Year

2008 and Provides Outlook for 2009

Conference Call on Wednesday, March 11, 2009 at 4:30 p.m. Eastern Time

BOTHELL, Washington and VANCOUVER, British Columbia, Canada March 11, 2009 OncoGenex

Pharmaceuticals, Inc. ( OncoGenex or the Company ) (NASDAQ: OGXI), today announced its fourth

quarter and fiscal year 2008 financial results, reviewed the Company s highlights and provided an

2008 was a tremendously active year from an execution standpoint as we took measures to prepare

for the final stages of clinical development of our lead product candidate, OGX-011, for the

treatment of cancer and to position for long term growth of the Company, said Scott Cormack,

President and Chief Executive Officer of OncoGenex. We released Phase 2 clinical data showing a

survival benefit in patients treated with OGX-011 and are working closely with the FDA to develop

Phase 3 study designs and protocols defining a registration path for product approval. We also took

measures to extend our cash runway, and we have been advancing discussions with potential

development partners.

Key Objectives for 2009

The following consolidated results reflect the operations of OncoGenex Technologies Inc.

( OncoGenex Technologies ) prior to the August 21, 2008 reverse takeover of Sonus Pharmaceuticals,

Inc. ( Sonus ), and the consolidated results of the OncoGenex Pharmaceuticals thereafter.

Research and development expenses for the fourth quarter and year ended December 31, 2008 were $4.2

million and $7.8 million, respectively, compared to $1.1 million and $4.1 million, respectively, in

the corresponding periods of 2007. The increases in 2008 were primarily due to manufacturing costs

incurred in the fourth quarter of 2008 associated with the development of our product candidate

OGX-427, an increase in employee expenses and higher facility costs resulting from the reverse

General and administrative expenses for the fourth quarter and year ended December 31, 2008 were

$1.0 million and $3.3 million, respectively, compared to $0.8 million and $3.5 million,

respectively, in the corresponding periods of 2007. The increase for the fourth quarter of 2008 was

primarily due to increased employee expenses and increased costs associated with operating as a

public company. The decrease for the year ended December 31, 2008 was primarily due to higher

financing related costs incurred during the year ended December 31, 2007, partly offset by higher

employee expenses and increased costs associated with operating as a public company in 2008.

Net loss for the fourth quarter and year ended December 31, 2008 was $5.0 million and $6.2 million,

respectively, compared to net losses of $3 million and $11.5 million, respectively, in the

corresponding periods of 2007. The increase for the fourth quarter of 2008 was primarily due to

increased employee expenses, costs associated with the development of OGX-427 and increased costs

associated with operating as a public company. The decrease for the year ended December 31, 2008

was primarily due to the impact of an extraordinary gain recognized in connection with the reverse

takeover of Sonus and a reversal of tax expense associated with the change in capital structure of

OncoGenex Technologies, both non-cash items.

The Company had $12.4 million in cash, cash equivalents and short-term investments as of December

31, 2008, compared to $5.1 million as of December 31, 2007. The Company expects that operating

expenses for 2009 will remain consistent with 2008 and believes it has sufficient cash, cash

equivalents and short-term investments to fund ongoing operations through February 2010. The

Company had 5,548,469 shares outstanding as at March 3, 2009.

OGX-011 Development Highlights

As the data from Phase 2 studies of OGX-011 have matured over the past year, we are gaining a

clearer picture of the potential clinical utility of OGX-011, particularly regarding the benefits

of overall survival and pain palliation for the treatment of CRPC, said Cormack. The endpoints

of survival and pain palliation from our Phase 2 studies directly translate into our Phase 3

development plan. We believe such endpoints are the only critical and relevant primary endpoints for Phase 3 trials in patients with CRPC and for

ultimately achieving marketing approval.

Results from our Phase 2 clinical development program are summarized below:

patients who had received OGX-011 with first-line chemotherapy were alive. OncoGenex has

previously reported a mature median survival of 14.1 months and a one-year survival rate of

54%. For comparison, published studies using a first-line gemcitabine and platinum-based

chemotherapy for advanced NSCLC reported median survivals of 8 to 10.8 months and one-year

survival rates of 33% to 43%. Market approval for Avastin plus paclitaxel and carboplatin

chemotherapy for NSCLC was based on results showing a median survival of 12.3 months

compared to 10.3 months for patients treated with paclitaxel and carboplatin chemotherapy

alone. Survival rates for Avastin plus chemotherapy versus chemotherapy alone were reported

as 51% versus 44%, respectively, at one year and 23% versus 15%, respectively, at two

With a robust clinical and non-clinical data package supporting OGX-011, we are working closely

with the FDA to develop Phase 3 study designs and protocols defining a registration path for

product approval, added Cormack.

Other Pipeline Highlights

Corporate Highlights

Conference Call Today at 4:30 p.m. ET

OncoGenex management will host a conference call at 4:30 p.m. Eastern Time today, Wednesday, March

11, 2009, to provide a business update and discuss the fourth quarter and fiscal year 2008 results.

A live webcast and slide presentation will be available through the Events and Presentations Web

page found in the Investor Relations section of the OncoGenex Web site at www.ir.oncogenex.com.

Alternatively, you may access the live conference call by dialing 877-874-1569 (U.S. Canada) or

719-325-4767 (International). A webcast replay will be available approximately two hours after the

call and will be archived at the same Web location for 90 days.

OncoGenex is a biopharmaceutical company committed to the development and commercialization of new

therapies that address unmet needs in the treatment of cancer. OncoGenex has a deep oncology

pipeline, with each product candidate having a distinct mechanism of action and representing a

unique opportunity for cancer drug development. OGX-011, the lead candidate currently completing

five Phase 2 clinical studies in prostate, lung and breast cancers, is designed to inhibit the

production of a specific protein associated with treatment resistance; OGX-427 is in Phase 1

clinical development; SN2310 has completed the Phase 1 clinical trial; and CSP-9222 and OGX-225 are

currently in pre-clinical development. More information about OncoGenex is available at

This press release contains forward-looking statements within the meaning of the safe harbor

provisions of the Private Securities Litigation Reform Act of 1995, including statements concerning

the Company s key objectives for 2009, potential results of clinical trials, the potential benefits

of the Company s product candidates and other anticipated activities, achievements, occurrences and

performance. These statements are based on management s current expectations and beliefs and are

subject to a number of risks, uncertainties and assumptions that could cause actual results to

differ materially from those described in the forward-looking statements. All statements other than

statements of historical fact are statements that could be deemed forward-looking statements.

The potential risks and uncertainties associated with forward-looking statements include, among

others, the possibility that an agreement with the FDA cannot be reached regarding a clinical trial

using pain as the primary endpoint for OGX-011, the timing and costs of clinical trials and

regulatory approvals, risks that clinical trials will not be successful or confirm earlier or

interim clinical trial results, the Company s need for additional financing, the uncertainty

associated with any potential partnering discussions, risks relating to the development, safety and

efficacy of therapeutic drugs and potential applications for these products and the risk factors

set forth in the Company s filings with the Securities and Exchange Commission, including its

Annual Report on Form 10-K for fiscal year 2008. No assurances can be given that any of the events

anticipated by the forward-looking statements will transpire or occur, or that if any of them do

transpire or occur, what impact they would have on the results of operations or financial condition